German DAX falls due to negative impact of US auto tariffs

The DAX index on the Frankfurt Stock Exchange fell more than 1.5% on Thursday, dropping below 22,900 points. The main pressure on the market came from automakers’ shares, which declined after American President Donald Trump announced a plan to impose 25% duties on imported cars. This move intensified trade friction between the United States and the European Union. As a result, share prices of the largest German car manufacturers slid: Mercedes-Benz fell by more than 5%, while Porsche, BMW, Volkswagen, and Daimler Truck lost between 3% and 5%.

The German auto industry and the government voiced concern over the new tariffs, calling for urgent talks between the EU and the US to prevent further escalation of trade tensions.

Meanwhile, Trading Economics forecasts that the DAX 40 index could hover around 22,400 points by the end of the quarter and fall to 21,900 points over the next year. The introduction of new American duties could make cars more expensive and dampen consumer demand, negatively affecting economic growth. Amid the uncertainty, investors remain cautious, increasing market volatility, according to Trading Economics.